WILMINGTON, MA — At last week’s Wilmington Board of Selectmen, Town Manager Jeff Hull announced that the Massachusetts Department of Revenue recently certified the town’s Free Cash Amount at $24,000,972 as July 1, 2019.
“The $24 million is essentially the excess of revenue over the cost and obligations we have,” explained Hull.
In response to questions from Selectman Mike McCoy, Hull clarified there’s an additional $14 million in the town’s capital stabilization account, which is separate from the town’s $24 million free cash amount. McCoy noted that folks, including himself, sometimes will combine those numbers. Hull explained the capital stabilization account is specifically for the purchase of capital items (e.g., vehicles) and building repairs or replacements.
“Between the two accounts, there’s roughly $38 million,” confirmed Hull. “In order to appropriate from the capital stabilization account, it requires a 2/3 vote at Town Meeting. To appropriate money from free cash, it requires a majority vote at Town Meeting.”
“Last fiscal year, we took $4 million [from free cash] and placed it into our capital stabilization account,” recalled Hull, who also noted that $566,000 was taken from free cash for the town’s underground fuel tanks project at the DPW and $185,000 to replace the library’s boiler. “When all was said and done, the free cash number was down from $23.6 million to $18.8 million after Town Meeting…. We were then able to replenish the account, which is now slightly higher than last year.”
The town’s free cash amount has steadily climbed over the past ten years, most recently from increasing $15.3 million (2015) to $18.3 million (2016) to $21.6 million (2017) to $23.6 million (2018) to $24 million (2019).
Hull noted that the town’s Free Cash amount is now above Standard & Poor’s recommended amount of 15% of a town’s operating budget.
“The fact of the matter is, we have significant costs associated with pensions. And we have at least $143 million in building projects. Is $38 million a lot of money? No question. But that needs to be considered in context,” cautioned Hull. “We’re going to have to spend some of that money at some point to do building repairs and building replacements. And when the economic tails off, and it will… we’re going to rely on that money. Is it a lot of money? It is. But we’re not looking to stick it to people. We’re trying to save for the rainy day and for some of these big projects.”
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